VIZSLA SILVER ANNOUNCES CLOSING OF US$300 MILLION CONVERTIBLE SENIOR NOTES OFFERING

Core Viewpoint - Vizsla Silver Corp. has successfully closed an offering of 5.00% convertible senior unsecured notes due 2031, raising an aggregate principal amount of US$300 million, which includes an additional US$50 million from initial purchasers exercising their option [1][2]. Summary of the Offering - The offering consists of 5.00% convertible senior unsecured notes with a total principal amount of US$300 million, aimed at supporting the development of the Panuco project and other corporate purposes [1][14]. - The net proceeds from the offering are approximately US$286 million after deducting commissions and fees, providing the company with a strong financial position for exploration and development activities [6][14]. - The notes feature a cash interest coupon of 5.00% per annum, payable semi-annually, with the first payment scheduled for July 15, 2026 [6][14]. Financial Flexibility - The structure of the notes is unsecured and covenant-light, allowing the company greater financial flexibility in managing cash flows from the Panuco project [2][6]. - The annual coupon rate of 5.00% is approximately 50% lower than traditional project financing rates, reducing expected debt service obligations during the construction phase [3][6]. - The company retains the ability to settle conversions of the notes in cash, shares, or a combination, which helps mitigate shareholder dilution [14]. Strategic Growth Opportunities - The offering allows Vizsla Silver to pursue strategic growth opportunities while maintaining flexibility in the use of project cash flows for share buybacks, dividends, or acquisitions [6][14]. - The capped call transactions associated with the offering are designed to compensate for potential economic dilution upon conversion of the notes, further enhancing the company's capital-raising capabilities [2][14]. Project Development - With cash holdings approximately double the capital requirement for the Panuco project, the company is well-positioned to advance both project development and district-scale exploration [6][11]. - The initial conversion rate for the notes is set at 171.3062 common shares per US$1,000 principal amount, translating to an initial conversion price of about US$5.84 per share, which is a 25% premium to the closing price at the time of pricing [6][14].